Tanzania Economy Profile 2009

Economy - overview

Tanzania is in the bottom ten percent of the world's economies in terms of per capita income. The economy depends heavily on agriculture, which accounts for more than 40% of GDP, provides 85% of exports, and employs 80% of the work force. Topography and climatic conditions, however, limit cultivated crops to only 4% of the land area. Industry traditionally featured the processing of agricultural products and light consumer goods. The World Bank, the IMF, and bilateral donors have provided funds to rehabilitate Tanzania's out-of-date economic infrastructure and to alleviate poverty. Long-term growth through 2005 featured a pickup in industrial production and a substantial increase in output of minerals led by gold. Recent banking reforms have helped increase private-sector growth and investment. Continued donor assistance and solid macroeconomic policies supported real GDP growth of 7.1% in 2008.

GDP (purchasing power parity)

$54.25 billion (2008 est.)
$50.65 billion (2007 est.)
$47.27 billion (2006 est.)
note: data are in 2008 US dollars

GDP (official exchange rate)

$20.72 billion (2008 est.)

GDP - real growth rate

7.1% (2008 est.)
7.1% (2007 est.)
6.7% (2006 est.)

GDP - per capita (PPP)

$1,300 (2008 est.)
$1,300 (2007 est.)
$1,200 (2006 est.)
note: data are in 2008 US dollars

GDP - composition by sector

agriculture: 27.1%
industry: 22.5%
services: 50.4% (2008 est.)

Population below poverty line

36% (2002 est.)

Labor force

21.06 million (2008 est.)

Labor force - by occupation

agriculture: 80%
industry and services: 20% (2002 est.)

Unemployment rate

NA%

Household income or consumption by percentage share

lowest 10%: 2.9%
highest 10%: 26.9% (2000)

Distribution of family income - Gini index

34.6 (2000)
38.2 (1993)

Investment (gross fixed)

22.6% of GDP (2008 est.)

Budget

revenues: $4.099 billion
expenditures: $4.517 billion (2008 est.)

Public debt

23.6% of GDP (2008 est.)
5% of GDP (2004 est.)

Inflation rate (consumer prices)

10.3% (2008 est.)
7% (2007 est.)

Central bank discount rate

15.99% (31 December 2008)
16.4% (31 December 2007)

Commercial bank prime lending rate

NA% (31 December 2008)
16.03% (31 December 2007)

Stock of money

$2.464 billion (31 December 2008)
$2.285 billion (31 December 2007)

Stock of quasi money

$3.362 billion (31 December 2008)
$3.212 billion (31 December 2007)

Stock of domestic credit

$3.297 billion (31 December 2008)
$2.501 billion (31 December 2007)

Industries

agricultural processing (sugar, beer, cigarettes, sisal twine); diamond, gold, and iron mining, salt, soda ash; cement, oil refining, shoes, apparel, wood products, fertilizer

Industrial production growth rate

9.1% (2008 est.)

Electricity - production

2.682 billion kWh (2006 est.)

Electricity - production by source

fossil fuel: 18.9%
hydro: 81.1%
nuclear: 0%
other: 0% (2001)

Electricity - consumption

2.225 billion kWh (2006 est.)

Electricity - exports

0 kWh (2007 est.)

Electricity - imports

123 million kWh (2006 est.)

Oil - production

0 bbl/day (2007 est.)

Oil - consumption

27,270 bbl/day (2006 est.)

Oil - imports

26,760 bbl/day (2005)

Oil - exports

0 bbl/day (2005)

Oil - proved reserves

0 bbl (1 January 2006 est.)

Natural gas - production

146 million cu m (2006 est.)

Natural gas - consumption

146 million cu m (2006 est.)

Natural gas - exports

0 cu m (2007 est.)

Natural gas - imports

0 cu m (2007 est.)

Natural gas - proved reserves

6.513 billion cu m (1 January 2008 est.)

Current Account Balance

-$2.695 billion (2008 est.)
-$1.856 billion (2007 est.)

Agriculture - products

coffee, sisal, tea, cotton, pyrethrum (insecticide made from chrysanthemums), cashew nuts, tobacco, cloves, corn, wheat, cassava (tapioca), bananas, fruits, vegetables; cattle, sheep, goats

Exports

$2.413 billion (2008 est.)
$2.227 billion (2007 est.)

Exports - commodities

gold, coffee, cashew nuts, manufactures, cotton

Exports - partners

India 10.1%, China 7.2%, Japan 6.4%, UAE 5.6%, Netherlands 5.4%, Germany 5% (2008)

Imports

$6.259 billion (2008 est.)
$4.861 billion (2007 est.)

Imports - commodities

consumer goods, machinery and transportation equipment, industrial raw materials, crude oil

Imports - partners

China 14.5%, South Africa 7.3%, Kenya 7.2%, India 6.3%, UAE 6.1% (2008)

Reserves of foreign exchange and gold

$2.915 billion (31 December 2008 est.)
$2.91 billion (31 December 2007 est.)

Debt - external

$5.353 billion (31 December 2008 est.)
$4.382 billion (31 December 2007 est.)

Stock of direct foreign investment - at home

$NA

Stock of direct foreign investment - abroad

$NA

Market value of publicly traded shares

$NA (31 December 2008)
$NA (31 December 2007)
$541.1 million (31 December 2006)

Economic aid - recipient

$1.505 billion (2005)

Currency (code)

TZS

Currency (code)

Tanzanian shilling (TZS)

Exchange rates

Tanzanian shillings (TZS) per US dollar - 1,178.1 (2008 est.), 1,255 (2007), 1,251.9 (2006), 1,128.93 (2005), 1,089.33 (2004)

Fiscal year

1 July - 30 June